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May 9, 2022
Question

I added item in Products and I made all things. I separated income Under Sales. When I sold it shows correctly under sales but not in P

  • May 9, 2022
  • 1 reply
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I added my inventory in Products and services and I made all things-quantity/sales price/cost and I separated unique income account for this inventory under sub account of sales and also Cost of sales. But when I sold this item, it shows correctly under sales income account that i separated but it is not shown in Cost of Sales account that i separated and also not reduced as closing inventory in balance sheet, it remains as initial cost of inventory in balance sheet. So please tell me what is wrong for that.

1 reply

MaryLandT
May 9, 2022

Hi there, pyaitphyothu33-g.

 

Inventory Cost of goods sold (COGS) is only affected when you sell inventory items on invoices or sales receipts. This offsets the decrease in your Inventory asset account, and the other accounts affected will be an income account as well as the Accounts receivable account.

 

If the sale is done using a Non-inventory item, only the last two account types will be affected in the sale as the inventory is not tracked. 

 

Additionally, COGS depends on the purchasing transaction's cost. If you haven't entered an expense for the inventory item, COGS will show a zero amount when added to the invoice. Then, if there's no initial cost on the inventory item, there's no amount on COGS when sold.

 

To learn more about how the Inventory feature works, see the articles below for further explanation. 

 

 

Let me know if you have additional questions about the sales showing up on the Profit and Loss report. I'll be right here to provide the information that you need.